WASHINGTON - Led largely by an increase in the deficit on goods, the imbalance in the U.S. current account rose in the second quarter to $123.3 billion from a revised $109.2 billion in the first quarter, the Commerce Department reported Thursday.
It was the fourth straight quarterly increase since the deficit of $84.4 billion in the second quarter of 2009, which in turn was the smallest deficit since the third quarter of 1999.
Commerce said that the second quarter deficit represented 3.4% of GDP, up from 3.0% in the first quarter.
The second quarter increase in the current account deficit was just below economists’ expectations. Thomson Reuters’ poll of economists predicted a $125.0 billion deficit.
The revised first quarter current account deficit of $109.2 billion was originally reported as a $109.0 billion deficit.
While goods exports increased 3.4% to $316.1 billion in the second quarter – as most major end-use categories like industrial supplies and materials as well as capital goods rose – an increase in goods imports was more pronounced, rising 6.3% to $485.7 billion from $457.0 billion.
As a result, the deficit on goods increased to $169.6 billion in the second quarter, up from $151.3 billion in the first.
The balance on services was a $38.0 billion surplus, up from a $36.9 billion surplus the previous quarter.
The deficit on goods and services rose to $131.6 billion in the second quarter from $114.5 billion in the first.
